Carbon Credit Market
InsightAce Analytic Pvt. Ltd. announces the release of market assessment report on “Global Carbon Credit Market Size, Share & Trends Analysis Report By Type (Voluntary Market, Compliance Market), Type of Project (Avoidance/Reduction Projects, Removal/Sequestration Projects (Nature-based, Technology-based)), Application (Aviation, , Energy, Building, Power, Industrial, Transportation)- Market Outlook And Industry Analysis 2034”
According to the latest research by InsightAce Analytic, the global carbon credit market size is valued at USD 531.2 Billion in 2024, and it is expected to reach USD 7126.6 Billion by the year 2034, recording a promising CAGR of 29.8% during the forecast period of 2025-2034.
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A carbon offset signifies a measurable and verified reduction in carbon dioxide emissions, which subsequently results in the issuance of a carbon credit. The distinction between the two lies in the fact that a carbon credit is generated through a specific, well-defined project with established parameters, ownership, comprehensive documentation, and a validated monitoring and verification framework.
Carbon offsets generally pertain to emission reductions that occur beyond an organization’s direct operations and, critically, outside the scope of existing regulatory obligations. In jurisdictions such as the European Union and the state of California, companies are mandated under environmental cap-and-trade systems to offset a portion of their carbon emissions. These market-based mechanisms enable the identification of the most cost-efficient methods for reducing emissions, while simultaneously encouraging technological advancement and supporting economic development.
Furthermore, international non-governmental organizations are playing an increasingly active role in the carbon credit market by investing in scalable climate and environmental initiatives. A prominent example is the World Bank’s establishment of the Climate Change Fund Management Unit in 2019, which was designed to develop innovative financial instruments aimed at supporting climate-resilient development, advancing low-carbon technologies, and amplifying the impact of global climate action.
Some of the prominent players in the Carbon Credit market are:
• 3 Degrees
• AltaGas
• Bluesource Llc
• Carbon Care Asia Limited
• Carbon Credit Capital
• Carbonbetter
• Carbonfund
• Clearsky Climate Solutions
• Climate Impact Partners
• Climate Trade
• Climatepartner Gmbh
• Climeco LLC
• Climetrek Ltd.
• Cool Effect, Inc.
• Degrees Group Inc.
• EcoAct
• Eki Energy Services Ltd.
• Enking International
• Finite Carbon
• Forest Carbon
• Green Mountain Energy
• Moss Earth
• Native Energy
• Natureoffice Gmbh
• South Pole Group
• Sterling Planet, Inc.
• Sustainable Travel International
• Tasman Environmental Markets
• Terrapass
• WGL Holdings, Inc.
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Market Dynamics
Drivers:
The global carbon credit market is anticipated to witness significant growth over the forecast period, primarily driven by rising investment activity within the sector. While the current market predominantly serves entities directly impacted by carbon emissions and regulatory compliance, its ongoing expansion is expected to attract a broader spectrum of financial stakeholders. This includes institutional investors such as banks, venture capital firms, and alternative financing sources seeking to capitalize on emerging opportunities within the carbon credit ecosystem.
Challenges:
Efforts to limit global temperature increases to below 2°C are prompting the adoption of more stringent emissions regulations and a corresponding reduction in the availability of emissions allowances. These developments are expected to lead to an upward trend in carbon credit prices. Furthermore, increased involvement by multinational corporations, institutional investors, and speculative traders has intensified activity in the global carbon credit trading landscape. Although achieving net-zero emissions remains a strategic priority for businesses, the high costs associated with emission reduction technologies continue to pose financial challenges, particularly in the short term, despite expectations of future cost declines.
Regional Trends:
The Asia-Pacific region is projected to command a substantial share of global carbon offset and credit market revenue, with strong growth anticipated in the coming years. The region’s market potential is further underscored by recent regulatory advancements, including the establishment of a formal carbon credit trading system in India. This development presents valuable opportunities for Indian firms specializing in knowledge-based services and consultancy to support the creation and deployment of carbon market frameworks on a global scale. Moreover, there is growing momentum toward decentralizing carbon markets to better align with the diverse economic conditions of participating nations.
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Additionally, the industrial expansion in the Europe region has been substantial, which has resulted in rising demand for carbon credit trading systems. Investments in clean power generation, electrification, and the replacement of aging infrastructure are driving regional market expansion.
Leading manufacturers of this field focus on offering high quality and customizable services to the clients. Also, partnerships, collaborations, mergers, and acquisitions are helping market players to boost their businesses.
Key developments in the market:
• In Jan 2023, ClimeCo announced the purchase of 3GreenTree Ecosystem Service Ltd. (3GreenTree) in order to improve the sustainable management of nature and provide environmental, social, and economic advantages. Resilient systems depend on locally produced and market-based solutions, according to ClimeCo, a worldwide sustainability consultancy with a symphony of industrial and nature-based carbon solutions that satisfy the different objectives of their customers’ climate programmes.
• In November 2022, 3Degrees collaborated with Merge Electric Fleet Solutions to give existing and new fleet customers actionable analysis and decades of knowledge. Merger’s charging will be monetized in the fuel states (CA, OR, WA), and all EV charging will be offset with RECs.
Market Segments
Market Size (Value US$ Bn) & Forecasts and Trend Analyses, 2023 to 2031 based on Type
• Voluntary Market
o Forestry and Land Use
o Renewable Energy
o Chemical Processes/Industrial Manufacturing
o Energy Efficiency/Fuel Switching
• Compliance Market
o EU ETS
o California CAP and Trade
o Others
Market Size (Value US$ Bn) & Forecasts and Trend Analyses, 2023 to 2031 based on Type of Project
• Avoidance/Reduction Projects
• Removal/Sequestration Projects
o Nature-Based
o Technology-Based
Market Size (Value US$ Bn) & Forecasts and Trend Analyses, 2023 to 2031 based on Application
• Aviation
• Building
• Energy
• Industrial
• Power
• Transportation
• Others
Market Size (Value US$ Bn) & Forecasts and Trend Analyses, 2023 to 2031 based on Region
• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa
North America Carbon Credit market revenue (US$ Million) by Country, 2023 to 2031
• U.S.
• Canada
Europe Carbon Credit market revenue (US$ Million) by Country, 2023 to 2031
• Germany
• France
• Italy
• Spain
• Russia
• Rest of Europe
Asia Pacific Carbon Credit market revenue (US$ Million) by Country, 2023 to 2031
• India
• China
• Japan
• South Korea
• Australia & New Zealand
Latin America Carbon Credit market revenue (US$ Million) by Country, 2023 to 2031
• Brazil
• Mexico
• Rest of Latin America
Middle East & Africa Carbon Credit market revenue (US$ Million) by Country, 2023 to 2031
• GCC Countries
• South Africa
• Rest of Middle East & Africa
View Overview Report: https://www.insightaceanalytic.com/report/carbon-credit-market/1742
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InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.
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This release was published on openPR.
